LONDON, ENGLAND — During 2010-11, the biofuels market gained increased interest as the price of oil increased rapidly.

Even though the production of biofuels is still mainly concentrated in the U.S., Europe and South America, 2010-11 was marked by the more diversified picture with regions such as Asia, Africa and the Middle East increasing their biofuels production. Visiongain's The Biofuels Market 2011-2021 report calculates that global spending on biofuels in 2011 will total $46.63 billion.

Technological advances and efficiency gains including higher biomass yields per acre and more gallons of biofuel per ton of biomass could steadily reduce the economic cost and environmental impacts of biofuels production.

The last decade was characterized by the increased use of first generation biofuels. However, the forecast period 2011-21 will be characterized by the shift from the first-generation to the third-generation biofuels like cellulosic biofuels and algae oil, according to the study.

Though the industry will be faced with the restraints of proving the effectiveness of some of the new technologies on a commercial scale, high production cost for advanced biofuels and lack of regulatory support for the most innovative technologies in this industry, the biofuels market is likely to provide substantial opportunities for potential investors.